Policy Studies Insurance

Addressing Florida’s assignment-of-benefits crisis

The Florida Legislature is once again attempting to address the state’s assignment-of-benefits litigation crisis. Earlier efforts at reform failed in each of the 2013-2017 legislative sessions. This year’s proposals again look likely to deadlock unless lawmakers can find compromise.

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Executive Summary

With one month left in this year’s regular legislative session, Florida lawmakers should pursue a compromise that includes at least those elements common to all of the legislative proposals: namely, that policyholders be granted a seven-day period to rescind assignments of benefits and that assignees be required to detail the scope of the work to be performed, as well as prove they are certified to perform that work.

Last year, the state House passed a measure that would strip assignees from being able to make use of the one-way attorneys’ fee. It failed to progress in the Senate. The legislation that passed the House this year would instead create a formula for attorneys’ fees. Depending on how large the spread between an insurer’s initial offer and the final payment, fees could be awarded to the plaintiff, the insurer or neither party. If this also proves too controversial for the Senate, a further compromise would be to keep the legislation’s formula for when and how large attorneys’ fees could be, while removing the provision that would sometimes shift insurers’ attorneys’ fees to the plaintiff.


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